ACCREDITATION OF THE
OR BRANCH IN RUSSIA
ACCREDITATION PROCESS, CLASSIFICATION
The accreditation of the representative office and branch is similar in all points. Therefore, this procedure is described uniformly.
The Representative office is a separate establishment which has the right to represent the interests of the mother company. This includes tasks such as marketing and advertising, building up contacts, spokespersons, etc. The representative office has no right to commercial activity. The representative office is not a legal person according to the law.
The Branch may perform the function of a representative office and has the right to commercial activity. The commercial activity is, however, solely on behalf of the mother company. This means that all contracts are concluded solely on the mother company. The branch is also not a legal person according to the law.
The disadvantage of the branch is the liability. For all activities of the branch the mother company is liable to contractors and the Russian state. It is not possible to operate an import / export business with a representative office or branch. You will need an LLC for that sort of business.
If only commercial activity is planned in Russia, the branch is rather disadvantageous due to the direct liability to the mother company.
Accreditation / registration of the representative office with the competent Russian authorities, manufacturing of the round seal.
The first step is the accreditation and registration of the foreign employees by the Chamber of Commerce and Industry.
Accreditation fee for a representative office is now 120 000 RUB and has to be paid to the tax authorities. Besides that, you will have to pay a small fee for each foreign employee to the Chamber of Commerce. Approximately 5.000 RUB per employee.
In general, the accreditation takes approximately 30 working days from the application to the issuing of the accreditation certificate.
After the accreditation, the registration with the tax authorities is to be carried out and a round seal has to be manufactured.
After the successful accreditation and registration with the tax authorities, the office has to be registered with the federal statistics agency and the Russian obligatory insurance funds (health, social and pension insurance funds). For that, adequate applications have to be filled in.
After completion of the accreditation and tax formalities, the bank accounts of the office can be opened. The opening of the accounts is carried out within approximately 15 days after filing in all necessary documents with the bank. The exact period of time depends on the respective bank. For the opening of the bank accounts, the signatures of the head of the office and of the accountant of the office (if existing) have to be certified by a notary or the bank. Personal presence is necessary.
Altogether the constitution process up to the working possibility of the office can take approximately 2 or 3 months.
REQUIRED DOCUMENTS AND INFORMATION
For the accreditation a lot of documents from various sources are needed. Some documents are created locally in Russia, others have to be purchased by the mother company.
Documents which must be prepared by the mother company and in Russia are:
- Extract from Trade Register notarized and with Apostille;
- Charter of the mother company notarized and with Apostille;
- Decision on setting up a representative office notarized and with Apostille (template will be provided by us);
- PoA for head of the branch notarized and with Apostillle (template will be provided by us);
- PoA for m|legal notarized and with Apostillle (template will be provided by us);
- Confirmation of the legal address (Guarantee letter from the landlord). Will be provided by us, if you book our “Legal Service Address”.
Documents which can be prepared by us on the basis of the PoA:
- Charter of the branch.
- Full and abbreviated company name;
- Address of the parent company with telephone and fax number;
- Activity fields of the company..
The documents that are created abroad with Apostille have to be notarized and translated into Russian in Russia.
We offer you the service of an interim manager.
The Interim manager is an employee and a nominal person, who is not in charge for matters that relate to the company’s business activities. The Interim Manager is employed as a coworker in the company. The duties of the Interim Manager are as follows:
- Signing of the accounting and other documents, which are to sign by the head of the branch;
- Signing of authorizations and contracts on the anticipated approval of the client;
- Signing of any documents related to the administration of personnel.
The costs of accreditation is very manageable. Apart from the services of a lawyer there only a translation costs, notary and state fees.
- Notary and translation costs are approximately at EUR 1,000;
- Appointment and one foreign employee EUR 90
- Accreditation fee EUR 2.000
Please note that fees and notary costs can be changed at any time.